Despite the global economic crisis, the Serbian economy managed to achieve a GDP growth of 2.0%. The growth rate slowed down in the last half of the year and dropped to only 0.5% in the last quarter. The main driving force of the growth was export, while domestic spending was reduced.

Industrial production slowed down in the second half of the year following the solid growth in the first half, so that at the end of the reporting year it was 1.8% higher compared to 2010. Agricultural production did well, despite the drought. The construction sector saw a slight revival in the first half of 2011, but these signs are feared to be temporary.

The annual inflation rate was 7.9%, which exceeded the expectations of the National Bank of Serbia. The prices of industrial products rose by 16.2%. Registered unemployment rate at the end of the year was 23.7%. Monetary policy saw a downward trend in the reference interest rate, which has remained relatively high and the highest in the region. The foreign currency exchange rate remained relatively stable, despite fluctuations during the year. The factors of the future (in) stability of Serbian currency may be, above all, anticipated inflationary trends (high public debt, budget and foreign trade deficit, new issues of treasury bonds and economic illiquidity).

2011 Main Macroeconomic Indicators


7.4 million

2011 Growth of GDP (estimate)


2011 GDP (estimate)

USD 46.4 billion

2011 GDP per capita (estimate)

USD 6,267

Inflation rate (retail prices)(estimate)


Source: IMF, World Economic Outlook, September 2011

Insurance market

Among 27 insurers (one more than in 2010) in the market, 4 were reinsurance companies and 23 insurance companies, of which 10 were non-life, 7 were life and 6 were composite insurance companies. The top three insurance companies held almost two thirds of the insurance market. There were also many banks, corporations and individuals, acting mostly as insurance brokers or agents. The majority of insurance companies (20) are predominantly foreign-owned, while the biggest insurer, Dunav (28.2% market share) is state-owned.

The share of life insurance products has been on the rise in recent years. Total premium, which increased by 3.0% in the first 9 months of 2011 compared to the same period of 2010, is still mainly generated by non-life insurance products (84.2% share).

Zavarovalnica Triglav Osiguranje Beograd continued to grow. It increased its written premium by 4.5%, which is 1.5% above the growth of the insurance market in Serbia. Its market share climbed to 3.6% (January – September 2010: 3.5%) and Zavarovalnica Triglav Osiguranje ranked seventh among insurance companies in Serbia.

Premium structure in the Serbian insurance market


Shares in the Serbian insurance market


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